Shared ownership woes.

Paulfrombedfordshire

Hi.
Okay I will try and keep it short.
We have seen a shared ownership house that we want. The 30% share is £77250. We have 10% deposit.
I'm self employed and this year i made a profit of £26k.
And the year before £18.
It increased because this year I bought another van which was my plan....try to better myself.
I pay monthly for this van.
However on my tax return my accountant put the whole purchase price of the van through, which is the right way they do it but it dropped my profit to 14k on paper.
My personal drawings were 26k still.

For two days we have been battling to get accepted for this mortgage because they just wont listen to reason. Are there such things as lenders that will go on your drawings?
We failed on affordability due to this stupid figure on my tax return.
Thanks in advance
Paul

benbay001

A £250k house when youre on somewhere between £18k and £26k doesnt sound very affordable to me either, unless your partner is a high earner.

Paulfrombedfordshire

Hi.
I see your point but I currently pay £1150 a month in rent plus Bill's whereas this house would be £797.

[Deleted User]

Paulfrombedfordshire wrote: »

Hi.
I see your point but I currently pay £1150 a month in rent plus Bill's whereas this house would be £797.

On a stressed rate it'd be a lot more than that they're assessing you on, sadly.


How long have you been self employed for?

Some lenders will, but it'll depend on other factors of the case (perfect credit, partner being high earner, strong track record of say 10 years s/e income etc.). I've done one similar recently, but it was for very high earners. Whether I'd get it through for £18k/£26k I'm really not sure to be totally honest.

Are you using a broker or have you gone direct?

Caz3121

Paulfrombedfordshire wrote: »

Hi.
I see your point but I currently pay £1150 a month in rent plus Bill's whereas this house would be £797.

is that £797 total for the mortgage payment plus the rent on the 70% and service charges?

csgohan4

Generally you can only borrow x4.5 of your gross income minus debt,


based on 26k you will not be able to borrow 250k unless you have a large deposit


Lower your budget

Takmon

benbay001 wrote: »

A £250k house when youre on somewhere between £18k and £26k doesnt sound very affordable to me either, unless your partner is a high earner.

csgohan4 wrote: »

Generally you can only borrow x4.5 of your gross income minus debt,

based on 26k you will not be able to borrow 250k unless you have a large deposit

Lower your budget

They are buying a 30% share for £77250 so they will only need to borrow £69525 from the bank so the fact that the total value of the house is £257500 won't be considering as part of the affordability.